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© 2007 International Monetary Fund

March 2007

IMF Country Report No. 07/131

This Selected Issues paper for the Philippines was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed January 5, 2007. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Philippines or the Executive Board of the IMF.

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Selected Issues

Prepared by Raju Singh, Ayako Fujita (both APD), Srikant Seshadri (PDR), David Newhouse, Daria Zakharova (both FAD), and Richard Podpiera (MCM)

Approved by the Asia and Pacific Department

January 5, 2007


  • I. Distributional Implications of the VAT Reform and Possible Mitigating Measures

    • A. Introduction

    • B. Methodology

    • C. Distributional Impact of the VAT Reform

    • D. Social Spending Options

    • E. Targeted Transfer Schemes

    • F. Conclusion

    • References

  • II. Can a Shift to Services Set the Philippines on a Stronger Growth Path?

    • A. Introduction and Background

    • B. A Closer Look at Services Sector-led Growth

    • C. Has the Sectoral Shift toward Services Lowered the Investment Ratio?

    • D. Is there a Relationship between Remittances and Investment?

    • E. Policy Implications and Conclusions

    • References

  • III. Credit Growth and Bank Balance Sheets in the Philippines

    • A. Introduction

    • B. Background

    • C. Methodology and Dataset

    • D. Results

    • References

Philippines: Selected Issues
Author: International Monetary Fund